Somebody from the KOA forum found this quote from the the lead game dev:

Unfortunately the only way to get both the demo and the game out the door on time was to branch the demo off of the main game a few months back, then try to copy over bug fixes from the main game to it where possible, while cutting out all the bits of the game that should NOT show up in the demo in order to get the download size down to something reasonable.

As a result, a great many polish bits and bug fixes from the main game didn't make it into the demo (some particualrly noteworthy fixes relate to audio cutting out or being significantly delayed). It's frustrating for us because we want the demo to be as shiny as possible, but in the end of the day we wanted to focus the bulk of our bug fixing and polish efforts on the final game rather than the demo. Hopefully you'll thank us for that on Feb 7th.